FILE PHOTO: Logos of ConocoPhillips are seen in its booth at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan, April 4, 2017. REUTERS/Toru Hanai/File Photo - RC11AEA51EE0

Results at Conoco, like many of its peers, have steadily improved in recent quarters alongside commodity prices and as better technology makes operations more efficient.

Conoco’s stock has risen as the company has prioritized cost cuts and asset sales over production increases. The Houston-based company generated more cash in the first quarter than its capital budget and shareholder payouts, an accomplishment feted by analysts.

Shares are up about 21 percent so far this year, outpacing the S&P 500 Energy Index .SPNY, which has gained about 3 percent since January. The stock’s biggest increase came after the company boosted its share buyback and dividend in February.

Earnings rose to $888 million, or 75 cents per share, compared to $586 million, or 47 cents, in the year-ago quarter.

Excluding one-time items, the company earned 96 cents per share, exceeding the 73 cents expected by analysts, according to Thomson Reuters I/B/E/S.

Doug Terreson, an oil industry analyst with Evercore ISI, said the results reflected a “positive surprise” and were an indication that energy companies can generate healthy profits even when prioritizing shareholder returns.

Production fell 23 percent to 1.2 million barrels of oil equivalent per day (boe/d) as a result of recent asset sales.

Conoco’s U.S. shale operations, which made money after losing cash for more than a year, are now profitable at oil prices CLc1 under $45 per barrel, more than $20 below current levels.